BlockFills Halts Withdrawals Amid Crypto Market Volatility

Crypto liquidity provider suspends deposits and withdrawals, raising concerns of another FTX-like event

Published on Feb. 12, 2026

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BlockFills, a Chicago-based cryptocurrency solutions firm and digital asset liquidity provider, has temporarily halted client deposits and withdrawals due to 'recent market and financial conditions'. The company said the decision was made to 'protect both clients and the firm' as the crypto market continues to experience notable volatility and declining asset prices.

Why it matters

Withdrawal freezes in the crypto industry often trigger concerns of insolvency and contagion, as seen with the collapse of several high-profile lenders like Celsius, BlockFi, Voyager, and FTX in 2022. The events led to market destabilization and negatively impacted sentiment. While temporary suspensions can also function as defensive measures, the BlockFills case raises questions about the broader health of the crypto market amid fears of a renewed 'crypto winter'.

The details

BlockFills operates as a cryptocurrency solutions firm and digital asset liquidity provider, serving approximately 2,000 institutional clients including crypto-focused hedge funds and asset managers. In 2025, the firm handled $60 billion in trading volume. Despite the suspension of deposits and withdrawals, clients have continued to trade on the platform and are still able to open and close positions in spot and derivatives markets.

  • BlockFills implemented the withdrawal and deposit suspension last week.
  • The crypto market has seen a notable decline in asset prices since the start of 2026, with Bitcoin falling to around $60,000, its lowest level since October 2024.

The players

BlockFills

A Chicago-based cryptocurrency solutions firm and digital asset liquidity provider that serves approximately 2,000 institutional clients.

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What’s next

BlockFills said management is working closely with investors and clients to resolve the situation and restore liquidity to the platform.

The takeaway

The BlockFills withdrawal freeze raises concerns about the broader health of the crypto market, as the industry continues to grapple with the fallout from the 2022 crypto winter. The situation highlights the fragility of the crypto ecosystem and the need for greater transparency and regulation to protect investors.